The prospect of NBA expansion into Las Vegas has been gaining traction for several years, with recent reports from ESPN indicating that the league will soon select a winning bid from three finalists, likely by the end of this year. The estimated bid range for the expansion franchise and a new arena is between $12 billion and $13 billion, placing it near the upper end of current market valuations. Notably, in August, an investment group led by Josh Kushner and former Disney CEO Bob Iger acquired the Los Angeles Lakers for a record-setting $12.5 billion. The sale did not include the Lakers' arena, which is owned by Anschutz Entertainment Group.
The three finalists vying for the NBA franchise include Nancy Walton Laurie and Bill Laurie, Steve Apostolopoulos and Marc Lasry, and Bill Foley and Jerry Colangelo. Each group has experience in owning professional sports teams or has previously sought to purchase franchises. In March, NBA owners unanimously voted to consider Las Vegas and Seattle as potential expansion sites, with sources indicating that the league is more inclined to choose Las Vegas due to a stronger bidding climate and higher financial offers. Additionally, bidders are reportedly more interested in constructing a new arena rather than utilizing Seattle's existing Climate Pledge Arena.
Las Vegas has established a significant relationship with the NBA over the past two decades, hosting the annual Summer League tournament since 2004 and featuring the semi-finals and finals of the new NBA Cup in-season tournament since its inception in 2023.
If Las Vegas secures an NBA team, it would become the last major sports league to set up shop in the city, joining the NHL's Golden Knights, who began play in 2017, the NFL's Raiders, who relocated in 2020, and the MLB's Athletics, set to begin play in 2028. Should the expansion move forward, Las Vegas would rank as the smallest metro area with all four major leagues.
The city's economy is currently at a pivotal point; while Las Vegas thrived economically from 2020 to 2024, there has been a downturn in tourism and visitation since early 2025, alongside fluctuating gaming revenue. Recent data from the Nevada Gaming Control Board reported that gross gaming revenue on the Strip rose slightly by 0.7% year-over-year to $684 million, making this fiscal year 2.2% ahead of last year. However, visitor volume fell by 4.3% to 3 million, marking the largest year-on-year decline for 2026 thus far. Average daily room rates on the Strip decreased by 11%, while revenue per available room dropped nearly 16%. In terms of air traffic, Harry Reid International Airport saw a 9% decline year-on-year, totaling 4.1 million passengers.
In recent years, Las Vegas has turned to sports as a driving force for economic growth, bringing in events like the F1 Las Vegas Grand Prix and the Super Bowl. Such events often yield substantial economic impacts, with franchise valuations increasing dramatically since their arrival. For instance, the A's valuation surged from $1.2 billion in 2024 to $2 billion today, even before the team has played a single game.
Despite this growth, the viability of an NBA franchise in Las Vegas remains uncertain, especially if bids approach or exceed $10 billion, with an additional $2 billion anticipated for an arena. The NFL leads the sports business sector in the U.S., boasting average team revenues exceeding $660 million, versus around $416 million for NBA teams. The record sale price for an NFL team was set at $9.6 billion when the Seattle Seahawks were purchased in July.
Local officials expressed optimism about the NBA's future in the city at the recent G2E 2026 conference. Janis Burke, chief sports officer of the Las Vegas Convention and Visitors Authority, remarked that "Vegas owns basketball," highlighting the incredible interest surrounding the Summer League this year. She emphasized, "You’ve got every shoe company and tournaments looking to come here; basketball is huge here. I think having the NBA full-time will bring a whole new dynamic and confirm our commitment to the sport."
As the bidding heats up, uncertainty lingers regarding the location of the new franchise's arena. Multiple proposals for NBA-type arenas on the Strip have surfaced and failed, but with the NBA’s expansion exploration gaining traction, discussions have intensified. Different stakeholders along the Strip are putting forward their proposals for available plots of land. The NBA is eyeing a potential franchise debut in the 2028-29 season, which suggests that T-Mobile Arena may serve as a temporary venue while a more permanent arena is under construction. Currently home to the Golden Knights, T-Mobile Arena is co-owned by MGM Resorts, AEG, and Foley, who is among the bidders for the NBA franchise. Although the arena has hosted NBA Cup tournament games, significant upgrades would be necessary for full-time hosting of an NBA team. Foley has committed to financing these enhancements if his bid succeeds, though that remains uncertain.
With the substantial expenditure expected for the team, it's likely that new owners will prefer constructing a new arena capable of generating greater revenue, echoing what the Golden State Warriors accomplished by opening the highly profitable Chase Center in San Francisco. At the G2E conference, Matt Prevost, the chief revenue officer of MGM subsidiary BetMGM, expressed support for having the prospective team at T-Mobile but acknowledged that if it ultimately relocated elsewhere, it would be acceptable as well.
